CFCOA Annual Meeting - August 4th, 2018

1. Canyon Ferry Crossing Owners Association Annual Meeting - 2018 9:00 A.M., Saturday, August 4th, 2018 Tri Lakes Fire Station Training Room Welcome!

2. Canyon Ferry Crossing Owners Association Annual Meeting – 2018 Agenda • Introduction and Welcome • Meeting Rules • Establish a Quorum (call of roll) • Reading of 2017 Meeting Minutes (reading and disposal of minutes) • Board Nominations (election of directors) • 2018 Accomplishments • Reports (reports of officers and committees) • Finance Committee • Architectural Review Committee • Maintenance Committee • Conservation Easement Remediation • Unfinished Business (old and new business) • Contact Information • The Way Forward

3. Canyon Ferry Crossing Owners Association Annual Meeting – 2018 Meeting Rules (Roberts Rules of Order) 1. For the purpose of recognition, a member at Meetings must (1) Stand, (2) Address the Chair as “Mr. or Madame President”, (3) State their name and (4) Proceed to speak only after recognition by the Chair. 2. Debate shall be limited to two (2) minutes for each speaker, except by two-thirds (2/3) consent. 3. Only fully accredited Property owners shall participate directly or indirectly in a vote on any subject 4. Property Owners that are indebted to the Association, in any amount shall not be seated and cannot vote in the Meetings until such indebtedness is cleared. 5. Nominations from the floor at the Annual Home owners Association Meeting can be made at the time of the meeting. Only one nominating speech shall be made for each candidate and shall be limited to two (2) minutes. Seconding speeches shall be limited to two (2) minutes for each candidate. In the event that more than one (1) candidate is nominated for any one office, the written balloting shall continue until one candidate has received a majority of votes cast by the delegates present and voting. 6. Discussion of personal grievances, local conditions, or claims concerning one (1) individual with respect to their personal interest, shall be in order before this meeting, but must be discussed without repeated unprofessional outbursts, name calling, personal attacks or be subject to removal from such meeting. 7. Please be familiar with the Covenance and Bylaws of the association to save time during meetings of the Home owners Association. 8. Open meetings will be conducted, with Minutes taken and posted on the Website.

4. Canyon Ferry Crossing Owners Association Annual Meeting – 2018 Quorum CFCOA Bylaws Section 3.9: “Quorum. The presence of twenty-five percent of the Members of the Corporation, represented either in person or by proxy, shall constitute a quorum” • Number of Eligible Members: 112 total, 28 Needed • Number of Members Present: • Number of Proxy Votes:

5. Canyon Ferry Crossing Owners Association Annual Meeting – 2018 Reading of 2017 Meeting Minutes (1 of 4) The Annual Meeting of the Canyon Ferry Owners Association was called to order at 10:00 a.m. at The Dam Bar, on Saturday March 25, 2017 by Scott Millam, President of the Association. Board members present were John Ratliff, Treasurer and Susan Peters, Secretary. Tabulation of the sign in sheets and of the proxies showed the following number of voters out of 107 voting (paying) lots: Voters present 17Voters present by proxy 16The total number present was 33 voters and as such a quorum (28 for a quorum) was present for all business to be conducted. Proof of due notice of the meeting was filed and the meeting proceeded.A motion was made to dispense of reading of the minutes due to the amount of time involved. It was seconded and unanimously passed to accept the 2016 annual meeting minutes. James and Mary Fried did not get notified of the meeting so the records will be verified.

6. Canyon Ferry Crossing Owners Association Annual Meeting – 2018 Reading of 2017 Meeting Minutes (2 of 4) REPORTS:Financial Report: John Ratliff, Treasurer presented the Financial Report and a Summary of Cash Flow is attached. $68,836 was collected in 2016 for dues and fees. $28, 161 was used for road improvements and repairs. $24, 679 was used for miscellaneous improvements, legal fees and utilities. The Association saved about $5,000 on maintenance due to volunteer maintenance committee. The Association had a $17,000 positive cash flow in 2016.John brought up the issue of a member who is past due on his membership dues and incurring fees and interest. There have been written threats to board members from this individual and he has threatened to sue each board member. It was discussed as to whether the Board should take further legal action. The consensus of the attending members was to go after him aggressively. No motion was needed. A lien has been placed on his property and at this time the amount owed is too high for Small Claims Court. The members wanted to know if the Association had insurance to cover any lawsuits against the Association. The Board was going to find out.Roads and Maintenance: Gary Nelson said this is a volunteer committee who has overhauled the front entrance irrigation system, which required $4,500 in supplies, negotiated a new water contract, replaced fence posts, added river rock and cut down 25 trees on the walking path along with a lot of clean up and repairs to a much neglected landscape and irrigation system. Gary along with Larry Shields and Scott Millam provided many hours of physical labor at no cost to the Association. Members wanted to see if the trees cut down on the pathway could be chipped and put back on the path. The Board will look into it. This year there will be a concentration on spraying the roadways. The old water tanks are abandoned and need to be removed. ARC: Fran Hovan reported that we have a new application on Lake Point Dr, 3 new developments, 2 property improvements, 1 building additional garage, 1 landscape deposit to return and holding 4 landscape deposits. A member asked if the Ryan house was within the building envelope and Fran confirmed that it was.Fire Department donation was approved again for 2017 in the amount of $1,000. 

7. Canyon Ferry Crossing Owners Association Annual Meeting – 2018 Reading of 2017 Meeting Minutes (3 of 4) Election of Directors:Scott opened the floor for nominations for the three Director positions that were open. Scott nominated himself, John and Walt Ainsworth. Rory McLeod then nominated Mike Clouse, Jim Ybarrondo, and Rory McLeod as a slate to replace the existing nominees. At this time Mike presented 20 additional proxies that were collected and signed by members that gave Mike the authority to vote their proxies. There was much confusion as to whether we could discuss the new nominees and what the purpose of this new slate was. Mike confirmed it was to replace the existing 3 members. There was much disagreement and contention about what the current board was doing versus what the new slate of nominees wanted done. Mike Clouse wanted it noted that three times inappropriate name calling was directed at Mike and Jim. It has been noted. After an hour and a half of awful, contentious discussion a vote was called for. It was seconded and a written vote was turned in. At that time, Susan and Jim confirmed proxies and counted the vote. The current board slate (Scott, John, Walt) received 26 votes and the new slate (Rory, Mike, Jim) received 27 votes. At that time Scott announced the results and left the meeting along with many members as the new directors came forward. The remainder of the meeting was conducted by the new board members, Rory McLeod, Mike Clouse and Jim Ybarrondo.The new Board’s priorities will be maintenance and paying down debt and Board transparency. It is also the Board’s responsibility to collect dues so they will be aggressively pursuing delinquent members. Jim said there would be no new Association expenditures until the debt is paid off and he is estimating that will be in 2018. The intent of the last increase in dues ($120 increase) was to place that amount into a separate fund to pay for future road construction.

8. Canyon Ferry Crossing Owners Association Annual Meeting – 2018 Reading of 2017 Meeting Minutes (4 of 4) New Business:The new Avalanche Irrigation District is a new proposed irrigation/subdivision district on the East Shore of Canyon Ferry Lake by Goose Bay. They are proposing 51 high density water wells that will pull from Canyon Ferry Lake and the aquifer system around the lake. The Board is concerned about how this will affect the wells in our subdivision. There are ongoing meetings and the Board encouraged those that could attend to do so and vote No. The new Board will meet with Gary Nelson to figure out how to proceed with the maintenance going forward.It was motioned, seconded and approved to adjourn the meeting at 1:20 p.m.Jim Ybarrondo, Mike Clouse, Rory McLeod, Susan Peters, SecretaryApproval; Move to Except; Yes No Yes, with Corrections

9. Canyon Ferry Crossing Owners Association Annual Meeting – 2018 Election of Directors • Board Secretary; TJ Hull (2 year term) • Board 2nd Vice; Rod Kessel (2 year term) • Nominations from the Floor for the Board?

10. Canyon Ferry Crossing Owners Association Annual Meeting – 2018 Accomplishments, Initiatives and Course Corrections • Accomplishments and New Initiatives. • Maintained our promise of transparency by posting all meeting dates, locations and minutes on the Association website. • Paid the $52,000 loan down by $20,000 and positively renegotiated the terms of the loan • Contracted with a tax professional to conduct a third-party review of past finances • Initiated legal action against the owners most delinquent in paying association dues while formally adopting a standard of one-year grace period for members that are having temporary financial difficulty • Undertaken a process to remove the current street lights and replace with solar lighting, saving $350 per month • Developed a “Weed Removal Notice” to be provided to owners that have not mitigated noxious weeds • Started work with the USPS to install refurbished parcel boxes at no cost to the association • Applied for and qualified for a USDA Conservation Program Grant for the conservation easement to mitigate fire hazards, improve aesthetics, reduce noxious weeds, reseed native grasses and improve wildlife habitat in the 37-acre easement

11. Canyon Ferry Crossing Owners Association Annual Meeting – 2018 Accomplishments, Initiatives and Course Corrections • Accomplishments and New Initiatives (continued) • Affordably sealed all street cracks throughout the Association • Successfully secured repairs in several areas of the neighborhood where asphalt repairs were failing • Established and formalized snow removal standards that balance cost with safety and owner convenience • Made excellent progress with organization of and timely posting of information to the Association website • Removed a number of “improvements” at the entrances to the subdivision that were illegally encroaching on private property. • Made excellent strides in establishing and maintaining accountability of supplies, equipment and property purchased by the CFCOA • Course Corrections • Ended the volunteer work initiative which created significant Association liability • Initiated corrective action to move the maintenance shed from the conservation easement in contravention to the Association CC&R’s • Undertook action to clarify or correct what appears to be improper disposal of the association weed sprayer • Worked hard to consolidate and organize seriously lacking association records

12. Canyon Ferry Crossing Owners Association Annual Meeting – 2018 Finance Records Review Results • Review of 2013 home owner association records conducted by local tax professional • Findings: • No major issues • Minor issues: contractor being paid fixed sum and other services(resolved), only single signature on association checks(discussed). • No further actions being taken. Cost of formal audit not cost effective for association.

13. Canyon Ferry Crossing Owners Association Annual Meeting – 2018 Income and Expense Report : Rory McLeod - Treasurer Jan - Dec 17 Income Architectural Review Fees 3,000.00 Dues - Other 63,300.00 Total Income66,300.00 Expense Insurance 2,572.00 Legal Fees 6,857.90 ARC Expenses 2,133.05 Weed Control 573.75 Landscape Maintenance 660.00 6452 · Maintenance - General 2,013.94 6453 · Maintenance and repairs - other 396.86 Road repairs and maintenance 3,790.00 Snow Removal 3,430.00 Landscape refund 1,000.00 Office Expense 475.93 Donations 1,000.00 Licenses 20.00 Taxes-Property 243.28 Loan principal reduction 39,552.40 Loan Interest 2683.82 Utilities – street lights and pump 4286.42 Other Misc and receipts 913.16 Total Expense 72,791.54

14. Canyon Ferry Crossing Owners Association Annual Meeting – 2018 2017 Balance sheet Dec 31, 17 ASSETS Current Assets Checking/Savings 21,025.22 Accounts Receivable 6,812.21 Prepaid expenses 440.00 Undeposited Funds 2,100.00 Total Current Assets 30,377.43 Fixed Assets 1301 · Roads 346,644.20 Mail Boxes 5,115.30 Maintenance Equipment 4,092.68 1600 · Accumulated Depreciation 145,895.00 Total Fixed Assets 209,957.18 TOTAL ASSETS240,334.61 LIABILITIES & EQUITY Liabilities Landscape Deposits 6,000.00 Construction loan 20,000.00 Total Current Liabilities 26,000.00 Long-term portion of construction loan 1,858.53 Total Liabilities 27,858.53 Equity Retained Earnings 198,764.45 Net Income 13,711.63 Total Equity 212,476.08 TOTAL LIABILITIES & EQUITY240,334.61

15. Canyon Ferry Crossing Owners Association Annual Meeting – 2018 Architectural Review Committee

16. Canyon Ferry Crossing Owners Association Annual Meeting – 2018 Architectural Review Committee Report August 4th 2018

17. Canyon Ferry Crossing Owners Association Annual Meeting – 2018 Architectural Review Committee Report August 4th 2018

18. Canyon Ferry Crossing Owners Association Annual Meeting – 2018 Maintenance Committee Reminders: Article 5.5d Lighting. All exterior lighting shall be arranged and shielded so that the light source cannot be seen from adjacent Roads or Lots and so that no direct beam illuminates other private property or roads. Article 5.12 Storage of Vehicles. No more than four vehicles may be stored or parked outside on any lot at any time, other than short term guest parking. At no time shall inoperable Vehicles be stored on, or repaired outside of a garage on any Lot. Definition of Vehicle per Article 1.20 of the CFC Covenants: Any motorized machine, including, but not limited to, an ordinary passenger automobile, truck, three-wheeler, motorcycle, four-wheeler, tractor, farm equipment, construction equipment, camper, snowmobile, jet ski, wave runner, boat, bobcat, backhoe, plow, trailer, recreational vehicle, or commercial vehicle.

19. Canyon Ferry Crossing Owners Association Annual Meeting – 2018 Maintenance Committee Reminders: 5.20 Animals. Common domestic pets may be kept on any parcel. No animals, livestock, poultry kept, bred or maintained for commercial purposes. Any animals kept by an Owner must be kept within the boundaries of the Owner’s lot. No pet may be kept which abnormally or unreasonably interferes with the rights, comforts or convenience of other Owners. Help: • Trimming back trees from protruding on to CFCHOA Roads • Please spray or remove all Noxious weeds on your properties

20. Canyon Ferry Crossing Owners Association Annual Meeting – 2018 Maintenance Committee Pending Projects: • Fixing/Improving Conservation Easement • Replacing Electrical Lighting with Solar Lighting • Repairing Unimproved Roads • Removal of Old Water Tanks for Fire back up of Water • Larger Parcel Mail Boxes at both Mail Stations • Move Association Storage Shed to approved location from Nature Trail • Ground Sterilant application on All Road Edges

21. Canyon Ferry Crossing Owners Association Annual Meeting – 2018 Conservation Easement Remediation • 37.4 Acres • 2018 Fuels Assessment concluded that the easement is a significant fire danger • Assessment concluded past “remediation” contributed to additional fire danger

22. Canyon Ferry Crossing Owners Association Annual Meeting – 2018 Conservation Easement Remediation • Applied for a USDA Natural Resources Conservation Service (NRCS) Conservation Program Grant • Our grant strategy includes: Fire break, forest stand improvement, tree and shrub pruning, woody residue treatment, brush management, habitat improvement and aesthetics improvement • CFCOA has been found eligible for grant • Grants are pending ranking at this time • CFCOA has not yet been awarded grant • Grant potential is approximately $900 per acre • Not a cost share grant – CFCOA must pay for per-acre difference between grant and actual cost (if there is a difference)

23. Canyon Ferry Crossing Owners Association Annual Meeting – 2018 Old and New Business • Remaining old business? • 2017 annual meeting question: Does the board have insurance to protect the Board in case of lawsuit? “Yes” • Can the fallen trees on the Conservation Easement be chipped and put back on the trail? “Yes” • New business? • - Traditional $1,000 donation to the Tri-Lakes Fire Department

24. Canyon Ferry Crossing Owners Association Annual Meeting – 2018 Contact Information Canyon Ferry Crossing Owners Association 3900 Waterdance Drive Helena, MT 59602 MAILING ADDRESS: EMAIL: President: Jim Ybarrondo    jimlinybarrondo@yahoo.com 1st Vice President: Mike (Mikey) Clouse   maclouse@q.com Treasurer: Rory McLeod   rmcleod4616@msn.comSecretary: (TJ) Theodore Hull   theodorehull@msn.com 2nd Vice President: Rodney Kessel  rkessel_consulting@hotmail.com WEBSITE: www.cfcowners.com Building Codes and ARC Association Documents Meeting Minutes Board Meeting Schedule Contact Information

25. Canyon Ferry Crossing Owners Association Annual Meeting – 2018 Adjournment Move to Adjourn THANK YOU!